The Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, has firmly stood by his decision to purchase 1,010 cars for tax officers, asserting that the move is essential to achieving the tax collection targets for the current fiscal year 2024-25. This comes after objections were raised by the Senate Standing Committee on Finance and Revenue regarding the purchase of new vehicles.
Senator Faisal Vawda had called for an immediate halt to the vehicle purchase, arguing that the decision was inappropriate given the significant shortfall in tax collections. He criticized the FBR for rewarding officers with new vehicles despite the tax deficit, accusing the board of misusing government funds. Vawda emphasized that the purchase of the cars was an example of "open corruption," and promised that the committee would not remain passive in the face of this decision.
Despite the objections, Langrial defended the move, stating that new cars were necessary for tax officers to carry out field operations, which are vital for tax collection. He explained that the officers need reliable transportation to visit sites and gather taxes, particularly in relation to sales tax. "How would they collect sales tax without proper transportation?" Langrial questioned. He also clarified that the Senate Standing Committee had raised concerns over the procedure followed for the purchase, not the decision itself, and assured that the procedure would be reviewed.
Langrial emphasized that the FBR remains committed to meeting its tax collection target of Rs12.9 trillion for the fiscal year, despite a shortfall of Rs386 billion in the first half of FY25. He assured that the board would take the necessary steps to close the gap and meet the fiscal target by year-end.
In addition to the car purchase decision, Langrial shared updates on the FBR's efforts to enhance the security and transparency of the goods transportation system. He announced that bids had been received to reinstall a live tracking system on vehicles and containers used to transport goods, including those moving to Afghanistan. This system, which was temporarily suspended, is now being improved to prevent smuggling and ensure better monitoring of goods transportation.
Langrial also addressed concerns regarding the housing sector, revealing that Prime Minister Shehbaz Sharif had formed a task force to review issues in the sector. One of the main challenges identified is the high transaction taxes, and Langrial stated that the FBR is currently reviewing these taxes to potentially ease the burden on the housing market.
Despite the ongoing debates, Langrial reiterated his confidence in achieving the tax collection goals and improving the efficiency of the tax system through these initiatives.
